Cavache, Kraft Foods: We expect the chocolate market to pick up in H2, 2010

The chocolate market in Romania is likely to grow 10% this year, due to poor economic conditions. However, the demand is expected to pick up no sooner than second half 2010, according to Kraft Foods’ corporate affairs manager’s estimates.

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“This year will be difficult. We even expect it to get worse. For the moment, the chocolate consumption showed no signs of recovery. The demand will most likely pick up in the second half next year”, said Doina Cavache, corporate affairs manager of Kraft Foods Romania.

The sales of Kraft’s Poiana and Milka chocolate brands will hover near last year’s level. According to data provided by the Kraft Foods Romania, the food maker sold 35 mln Poiana tablets, and approximately the same number of Milka. Poiana brand accounts for circa 50% of total sales reported by Kraft Foods in chocolate segment.

Year-to-date, the price for products in Poiana lineup has been increased by 5% due to currency fluctuations.

60% of the marketing budget for Poiana brand has been geared towards a communication campaign - “Make your day” (“Fa-ti ziua mai frumoasa”). The company will launch an integrated promotion campaign for the chocolate brand during September 1-November 30, which includes TV and radio ads, and billboards in 18 cities and 2.2 million flyers distributed in the mail boxes.